Finding a Certified Public Accountant, or CPA, who knows real estate tax laws is essential, whether you are a big investor or a small time homeowner. Why is it so important to seek out a qualified CPA? For starters, look at the U.S. Tax Code. This monstrosity spans millions of pages, and is a construct of the early 20th Century. Over the years it has grown and grown and grown, till the point that it is unstoppable, sort of like in that old horror movie “The Blob.” And many ordinary Americans are equally terrified of it. They are, because they hear scary stories all the time about the Internal Revenue Administration and the harsh punishments for tax evasion. They are afraid that if they do not know the millions of pages, they will be punished in a severe financial or even legal way.
Who can blame them? If you gave one tax return to 10 different CPAs, they would probably come up with 10 different final numbers. (Maybe 11.) How is the ordinary American supposed to make sense of all this and fulfill the requirements as set forth by law? The best way is to actually find that quality CPA and put him to work for you. There are countless benefits that a CPA can bring to the table:
1. Screw-ups do not have to be blamed on the client.
If something goes wrong, it is not necessarily your fault. All you really have to do is bring all tax related documents, and you have the ammunition that you need to get things done. If there is an error of entry, then you have a record to protect you.
2. Good CPAs give you peace of mind.
You could go on worrying about those CPA mixups, but the truth of the matter is they don’t happen that often. Most of the time, CPAs know how to work within the confines of the tax code better than you would be able to.
3. Good CPAs will make you more money than they cost you.
This one is very true. While you may be able to do your taxes yourself, it will cost you much in time, and you will likely still not find all the things out there that can be used to your advantage. While a CPA will charge you for the work they do, they are relieving you of the mental burden and usually finding higher amounts of money for a return, so that you still come out ahead.
With all the reasons to try a qualified CPA, why wouldn’t you want to? The tax code is too complicated to go it alone, and you have too much to lose otherwise.
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- 5 Reasons You Should Hire a CPA This Tax Season (2012tax.org)
- Tax Preperation For Real Estate Investing (2010tax.org)
Finding A CPA Who Knows Real Estate Tax Laws